Internal controls are important because they:

a. deter fraud and prevent misleading financial statements.

b. eliminate fraud.

c. guarantee accurate financial statements.

d. ensure that the company maintains a compensating balance.

Which of the following of internal control deals with hiring, training, evaluation, compensation, and promotion of employees?

a. Risk assessment

b. Control procedures

c. Control environment

d. Monitoring

A check drawn by a depositor for $295 in payment of a liability was recorded in the depositor's book as $925. The $630 difference would be included on the bank reconciliation as a(n):

a. addition to the cash balance per bank.

b. deduction from the cash balance per bank.

c. deduction from the cash balance per books.

d. addition to the cash balance per books.

The due date of a 90-day note dated July 5 is:

a. October 2.

b. October 3.

c. September 30.

d. October 1.

A 90-day, 10% note for $10,000 dated March 15 is received from a customer on account. The face value of the note is:

a. $10,250.

b. $9,000.

c. $10,000.

d. $9,750.